Evaluating consumer preference and willingness to pay for low emission electricity: Evidence from a national choice experiment in the US

Bruktawit M. Ahmed and Mahelet Fikru ()

Energy Economics, 2025, vol. 148, issue C

Abstract: This study examines consumer preferences for renewable energy and carbon capture technologies through a choice experiment involving 1200 nationally representative respondents in the US. The analysis estimates willingness to pay (WTP) for increases in renewable energy content, carbon capture, and strategies for managing captured carbon, such as geological storage or industrial utilization. Results reveal a strong preference for low-emission electricity products, with WTP estimates ranging from $2.9 to $4.1 per month for a 10 % increase in renewable content and $0.50 to $2.3 for a 10 % increase in carbon capture. Respondents most preferred carbon capture and utilization for managing emissions, with a WTP ranging from $2 to close to $7 per month. Tax credits positively influenced preferences, while higher electricity bill increases led to aversion. These findings provide insights for policymakers crafting decarbonization strategies that balance clean energy adoption, carbon management, and affordability.

Keywords: Carbon capture and storage; Technology; Renewable energy; Willingness to pay; Discrete choice experiment; Energy transition (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:148:y:2025:i:c:s0140988325004773

DOI: 10.1016/j.eneco.2025.108650

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